Rio Tinto plans to reduce annual alumina production at its Yarwun refinery by 1.2 million metric tons starting next October, marking a significant shift for the seaborne, smelter-grade alumina market outside China. RBC Capital Markets analyst Kaan Peker notes that this reduction tightens the market by roughly 3%. He adds that, on a regional level, Australia will have removed 3.4 million tons per annum of alumina refining capacity between 2023 and 2026, equivalent to about 20% of the country’s total capacity. Peker highlights that tailings storage has become the critical constraint in Western alumina, and the investment required to expand storage is unlikely to yield sufficient returns at current spot alumina prices.